world bank government bond...
TRANSCRIPT
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FIXED INCOME TRADING LOCAL CURRENCY BOND MARKET
WORLD BANK GOVERNMENT BOND CONFERENCE
WILL OBERUCH
GLOBAL PRODUCT MANAGER, FIXED INCOME TRADING
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MARCH// 13 // 2014
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DEVELOPMENT OF DOMESTIC BOND MARKET
2
Singapore was looking for Electronic Trading Platform to increase price
transparency and liquidity
Amt Outstanding
quadrupled to
S$78 Bln
2-Way Quote
Driven Order
Book
Corp Bond
EOD Fixings
E-Bond Launched
Request for
Quote
1997-2005 July 2005 May 2006 June 2012
Bloomberg delivered a solution called E-Bond to address issues for
local currency bond market
Foreign Investment doubled from 6% to 14% 3 months after launch
Average Daily Turnover increased %67 from 2004 to 2012
Corporate Issuance increased %270 from 2004 to 2012 (LEAG<go>)
Bloomberg offers a complete solution for the Local Fixed Income Market
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Low Liquidity
Price Transparency
High Trading Costs
Lack of Infrastructure
Narrow Investor Base
Bond Issuance
Market Trading Rules
Primary Dealer Systems
Market Maker Program
Bloomberg offers a complete solution for the Local Fixed Income Market
1. Scalability
2. Functionality
3. Infrastructure
COMPLETE SOLUTION LOCAL CURRENCY BOND MARKET DEVELOPMENT
Bloomberg
Barriers Policy
Technology
Innovation
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Bloomberg
COMPLETE SOLUTION LOCAL CURRENCY BOND MARKET DEVELOPMENT
4
Price Discovery
Analytics
News
Community
Primary Auction
E-Bond
Global Investor
Order Routing
STP
Trade Reporting
Fixings/Valuations
Curve Development
Market
Sponsor
Market
Makers
Local
Investors
Global
Investors
Global
Dealers
1. Analysis 2. Execution 3. Post Trade
Settlement/
Payment
Central
Depository
Back Office
Systems
Bloomberg offers a scalable solution throughout the trade workflow
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E-BOND PROCESS 5
Define
Market
Structure
Register
Voice
Trades
Firm
Two-
Quotes
Price
Discovery Market
Oversight
Trade
Data
EOD
Fixings
Glo
bal In
vesto
rs A
na
lytic
To
ols
Settlement/
Clearing
Mark
et
Makers
E
-Bo
nd
Tra
din
g
BL
OO
MB
ER
G T
ER
MIN
AL
Request
for Quote
(RFQ)
Yield
Curve
Trade
Reporting
Local Buyside
Register
Voice
Trades
Request
for Quote
(RFQ)
Central Bank / Ministry of Finance
Market
Rules
Voice/STP
VCON
FIT
ALLQ Staging
TSOX
Community
IB
Global Trading Fixed Income Trading Tools
Bloomberg provides all the functionality needed for the Secondary Market.
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E-BOND MARKET SURVEILLANCE 6
Bloomberg offers the suite of market tools to monitor price and trade
activity in real time or a period basis.
E-Bond
Quoting Obligations
Trade Reporting
Graphing and Alerts
Admin Blotters
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Quoting Time
Compliant Average Spread
Compliant Time
Compliant Quantity
Access to the Quoting Obligations can be done in real time or in a period basis
7 E-BOND MARKET SURVEILLANCE QUOTING OBLIGATIONS
View Quoting Obligations for Market Maker Program
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8 E-BOND MARKET SURVEILLANCE TRADE REPORTING
Real-time trade statistics for intraday and periodic trade data.
Supports over 40 bond exchanges, including E-Bond globally
MOSB<go>
Most Traded
Bond per
Exchange
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9 E-BOND MARKET SURVEILLANCE TRADE REPORTING
Summary Trade Statistics
Summary by Issue
Price Taker and Maker Performance
Turnover per Primary Dealer including RFQ and Orders (shown)
Data can also be delivered electronically
Robust Reporting for the Market Surveillance and Performance
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10 E-BOND MARKET SURVEILLANCE GRAPHING AND ALERTS
GP<go>
All Trading Activity is
recorded into Bloomberg
Pricing Source: EBND
Trading Activity is
configurable about which
data is published.
IYC<go>
Trading data can be feed
into graphing, analytics,
curve, and valuated
pricing.
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Commingled competing quotes with quote depth
Quote display can be firm or indicative
Integrated IB chat facility available
Supports interbank & B2C participants
Live quotes
and orders
Links to
Bloomberg
Analytics
On Market
Activity
view for
active
trades
Inquiries
requiring
actions
Views for
Orders,
Security Data
and Market
Activity
E-BOND MARKETS SCREEN PRICE DISCOVERY AND TRADING
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No Separate Fee
Flawless Performance
Reliable
Highly Secure
Hosted Solution
Outsourcing of Maintenance
24/7 Support
“Financial markets are constantly changing, so does Bloomberg to respond new challenges and improve their product. Such changes are broadly client driven and you can be one of them”
- Head of Financial Markets Department
Bloomberg manages the infrastructure for the technology and personal
to keep the focus on the market development
COMPLETE SOLUTION LOCAL CURRENCY BOND MARKET DEVELOPMENT
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14 Years Overall Experience Using Both** Bond Auctions and E-Bond*
1998-01
• South Africa
• Belgium
• Dutch
• Portugal
2005-07
•Singapore*
•Hong Kong*
•UK DMO
2009-10
• Georgia** • Pakistan**
2011
• Sri Lanka
• Dominican Republic**
2013 • Slovakia
• Russia Repo
WHY USE BLOOMBERG FOR YOUR LOCAL CURRENCY BOND MARKET?
Will Oberuch +1 212-617-8995
Bloomberg offers a complete solution for the Local Fixed Income Market
1. Scalability
2. Functionality
3. Infrastructure